Defense Federal Acquisition Regulation Supplement: Modification of DFARS Clause “Trade Agreements” (DFARS Case 2019-D016), 48500-48501 [2019-19560]

Download as PDF 48500 Federal Register / Vol. 84, No. 178 / Friday, September 13, 2019 / Rules and Regulations circumstances for the specific requirement, with consultation with cognizant patent or legal counsel. This clause is beneficial to DoD by facilitating a standard and uniform incorporation of more common terms and conditions associated with patent and license agreements and assignments into applicable contracts, without having to draft the language of these more common terms and conditions with each contract. This approach also ensures the same language is incorporated into each contract, which helps DoD avoid miscommunications or misunderstanding and maintain consistency in negotiating such terms and conditions DoD-wide. The DoD Regulatory Reform Task Force reviewed the requirements of DFARS clause 252.227–7001 and determined that the DFARS clause should only be updated to conform to current drafting standards. khammond on DSKBBV9HB2PROD with RULES2 III. Applicability to Contracts at or Below the Simplified Acquisition Threshold and for Commercial Items, Including Commercially Available Offthe-Shelf Items This rule only updates pronouns used in DFARS clause 252.227–7001. The rule does not impose any new requirements on contracts at or below the simplified acquisition threshold and for commercial items, including commercially available off-the-shelf items IV. Publication of This Final Rule for Public Comment Is Not Required by Statute The statute that applies to the publication of the Federal Acquisition Regulation is Office of Federal Procurement Policy statute (codified at title 41 of the United States Code). Specifically, 41 U.S.C. 1707(a)(1) requires that a procurement policy, regulation, procedure or form (including an amendment or modification thereof) must be published for public comment if it relates to the expenditure of appropriated funds, and has either a significant effect beyond the internal operating procedures of the agency issuing the policy, regulation, procedure, or form, or has a significant cost or administrative impact on contractors or offerors. This final rule is not required to be published for public comment, because DoD is not issuing a new regulation; rather, this rule merely updates the contact information already provided for in existing clauses. V. Executive Orders 12866 and 13563 E.O.s 12866 and 13563 direct agencies to assess all costs and benefits of VerDate Sep<11>2014 18:37 Sep 12, 2019 Jkt 247001 available regulatory alternatives and, if regulation is necessary, to select regulatory approaches that maximize net benefits (including potential economic, environmental, public health and safety effects, distributive impacts, and equity). E.O. 13563 emphasizes the importance of quantifying both costs and benefits, of reducing costs, of harmonizing rules, and of promoting flexibility. This is not a significant regulatory action and, therefore, was not subject to review under section 6(b) of E.O. 12866, Regulatory Planning and Review, dated September 30, 1993. This rule is not a major rule under 5 U.S.C. 804. VI. Executive Order 13771 This rule is not subject to E.O. 13771, because this rule is not a significant regulatory action under E.O. 12866. VII. Regulatory Flexibility Act Because a notice of proposed rulemaking and an opportunity for public comment are not required to be given for this rule under 41 U.S.C. 1707(a)(1) (see section IV. of this preamble), the analytical requirements of the Regulatory Flexibility Act (5 U.S.C. 601 et seq.) are not applicable. Accordingly, no regulatory flexibility analysis is required, and none has been prepared. ‘‘(description of subject matter)’’ and adding ‘‘which the Contractor’’, ‘‘acquired by the Contractor’’, and ‘‘[description of subject matter]’’ in their places, respectively. [FR Doc. 2019–19559 Filed 9–12–19; 8:45 am] BILLING CODE 5001–06–P DEPARTMENT OF DEFENSE Defense Acquisition Regulations System 48 CFR Part 252 [Docket DARS–2019–0055] RIN 0750–AK53 Defense Federal Acquisition Regulation Supplement: Modification of DFARS Clause ‘‘Trade Agreements’’ (DFARS Case 2019–D016) Defense Acquisition Regulations System, Department of Defense (DoD). ACTION: Final rule. AGENCY: DoD is issuing a final rule amending the Defense Federal Acquisition Regulation Supplement (DFARS) to update a paragraph citation in DFARS clause 252.225–7021, Trade Agreements. SUMMARY: Effective September 13, 2019. Ms. Carrie Moore, telephone 571–372–6093. SUPPLEMENTARY INFORMATION: DATES: VIII. Paperwork Reduction Act FOR FURTHER INFORMATION CONTACT: The rule does not contain any information collection requirements that require the approval of the Office of Management and Budget under the Paperwork Reduction Act (44 U.S.C. chapter 35). I. Background List of Subjects in 48 CFR Part 252 Government procurement. Jennifer Lee Hawes, Regulatory Control Officer, Defense Acquisition Regulations System. Therefore, 48 CFR part 252 is amended as follows: PART 252—SOLICITATION PROVISIONS AND CONTRACT CLAUSES 1. The authority citation for part 252 continues to read as follows: ■ Authority: 41 U.S.C. 1303 and 48 CFR chapter 1. 252.227–7001 [Amended] 2. Amend section 252.227–7001 by— a. Removing the clause date of ‘‘(AUG 1984)’’ and adding ‘‘(SEP 2019)’’ in its place; and ■ b. In the clause text, removing ‘‘which he’’, ‘‘acquired by him’’, and ■ ■ PO 00000 Frm 00006 Fmt 4701 Sfmt 4700 This final rule amends DFARS clause 252.225–7021, Trade Agreements, to update an outdated citation in paragraph (e) of the basic clause and paragraph (f) of the alternate II clause. The DFARS clause is included in solicitations and contracts for the acquisition of supplies subject to the World Trade Organization Government Procurement Agreement. The clause: Provides pertinent definitions and country listings for designated and qualifying countries; requires contractors to deliver only U.S.-made, qualifying country, or designated country end items, unless otherwise stated in the contract; prohibits the contract price from including duty for products for which the contractor will claim duty-free entry; and provides information on applicable sections of the Harmonized Tariff Schedule of the United States (HTSUS). Paragraph (e) of the basic clause and paragraph (f) of the alternate II clause provide a link to the HTSUS and identify specific sections of the Schedule that provide more information E:\FR\FM\13SER2.SGM 13SER2 Federal Register / Vol. 84, No. 178 / Friday, September 13, 2019 / Rules and Regulations on the duty-free status of articles specified in paragraph (a)(2)(ii)(A) of the clause. Paragraph (a)(2)(ii)(A) used to be the location in the clause for the definition of ‘‘Caribbean Basin country end product,’’ but this paragraph number no longer exists. Instead, the clause has been renumbered and all of the definitions in the clause are include in alphabetical order under paragraph (a). This rule removes the reference to paragraph (a)(2)(ii)(A) in the clause and replaces it with a reference to the definition of ‘‘Caribbean Basin country end product’’ in paragraph (a). an amendment or modification thereof) must be published for public comment if it relates to the expenditure of appropriated funds, and has either a significant effect beyond the internal operating procedures of the agency issuing the policy, regulation, procedure, or form, or has a significant cost or administrative impact on contractors or offerors. This final rule is not required to be published for public comment, because DoD is not issuing a new regulation; rather, this rule is merely updating a reference in an existing clause. II. Discussion and Analysis The modification of this DFARS text implements a recommendation from the DoD Regulatory Reform Task Force. On February 24, 2017, the President signed Executive Order (E.O.) 13777, ‘‘Enforcing the Regulatory Reform Agenda,’’ which established a Federal policy ‘‘to alleviate unnecessary regulatory burdens’’ on the American people. In accordance with E.O. 13777, DoD established a Regulatory Reform Task Force to review and validate DoD regulations, including the DFARS. A public notice of the establishment of the DFARS Subgroup to the DoD Regulatory Reform Task Force, for the purpose of reviewing DFARS provisions and clauses, was published in the Federal Register at 82 FR 35741 on August 1, 2017, and requested public input. No public comments were received on this clause. The DoD Regulatory Reform Task Force reviewed the requirements of DFARS clause 252.225–7021 and recommended its modification to correct the reference. V. Executive Orders 12866 and 13563 khammond on DSKBBV9HB2PROD with RULES2 III. Applicability to Contracts at or Below the Simplified Acquisition Threshold and for Commercial Items, Including Commercially Available Offthe-Shelf Items This rule only updates a citation in an existing clause. The rule does not impose any new requirements on contracts at or below the simplified acquisition threshold or for commercial items, including commercially available off-the-shelf items. IV. Publication of This Final Rule for Public Comment Is Not Required by Statute The statute that applies to the publication of the Federal Acquisition Regulation is Office of Federal Procurement Policy statute (codified at title 41 of the United States Code). Specifically, 41 U.S.C. 1707(a)(1) requires that a procurement policy, regulation, procedure or form (including VerDate Sep<11>2014 18:37 Sep 12, 2019 Jkt 247001 E.O.s 12866 and E.O. 13563 direct agencies to assess all costs and benefits of available regulatory alternatives and, if regulation is necessary, to select regulatory approaches that maximize net benefits (including potential economic, environmental, public health and safety effects, distributive impacts, and equity). E.O. 13563 emphasizes the importance of quantifying both costs and benefits, of reducing costs, of harmonizing rules, and of promoting flexibility. This is not a significant regulatory action and, therefore, was not subject to review under section 6(b) of E.O. 12866, Regulatory Planning and Review, dated September 30, 1993. This rule is not a major rule under 5 U.S.C. 804. This rule is not subject to E.O. 13771, because this rule is not a significant regulatory action under E.O. 12866. VII. Regulatory Flexibility Act Because a notice of proposed rulemaking and an opportunity for public comment are not required to be given for this rule under 41 U.S.C. 1707(a)(1) (see section IV. of this preamble), the analytical requirements of the Regulatory Flexibility Act (5 U.S.C. 601 et seq.) are not applicable. Accordingly, no regulatory flexibility analysis is required, and none has been prepared. VIII. Paperwork Reduction Act The rule does not contain any information collection requirements that require the approval of the Office of Management and Budget under the Paperwork Reduction Act (44 U.S.C. chapter 35). Frm 00007 Fmt 4701 Sfmt 4700 List of Subjects in 48 CFR Part 252 Government procurement. Jennifer Lee Hawes, Regulatory Control Officer, Defense Acquisition Regulations System. Therefore, 48 CFR part 252 is amended as follows: PART 252—SOLICITATION PROVISIONS AND CONTRACT CLAUSES 1. The authority citation for 48 CFR part 252 continues to read as follows: ■ Authority: 41 U.S.C. 1303 and 48 CFR chapter 1. 252.225–7021 [Amended] 2. Amend section 252.225–7021 by— a. In the clause heading, removing the date ‘‘(AUG 2019)’’ and adding ‘‘(SEP 2019)’’ in its place; ■ b. In paragraph (e) introductory text, removing ‘‘paragraph (a)(2)(ii)(A)’’ and adding ‘‘the definition of ‘‘Caribbean Basin country end product’’ within paragraph (a)’’ in its place. ■ c. In the Alternate II clause— ■ i. In the clause heading, removing the date ‘‘(AUG 2019)’’ and adding ‘‘(SEP 2019)’’ in its place; ■ ii. In paragraph (f) introductory text, removing ‘‘paragraph (a)(2)(ii)(A)’’ and adding ‘‘the definition of ‘‘Caribbean Basin country end product’’ within paragraph (a)’’ in its place. ■ ■ [FR Doc. 2019–19560 Filed 9–12–19; 8:45 am] BILLING CODE 5001–06–P VI. Executive Order 13771 PO 00000 48501 DEPARTMENT OF DEFENSE Defense Acquisition Regulations System 48 CFR Part 252 [Docket DARS–2019–0046] RIN 0750–AK54 Defense Federal Acquisition Regulation Supplement: Modification of DFARS Clause ‘‘Readjustment of Payments’’ (DFARS Case 2019–D017) Defense Acquisition Regulations System, Department of Defense (DoD). ACTION: Final rule. AGENCY: DoD is issuing a final rule amending the Defense Federal Acquisition Regulation Supplement (DFARS) to update an existing DFARS clause to clearly identify the Government official to be contacted when applying the terms of the clause, pursuant to action taken by the Regulatory Reform Task Force. SUMMARY: E:\FR\FM\13SER2.SGM 13SER2

Agencies

[Federal Register Volume 84, Number 178 (Friday, September 13, 2019)]
[Rules and Regulations]
[Pages 48500-48501]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-19560]


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DEPARTMENT OF DEFENSE

Defense Acquisition Regulations System

48 CFR Part 252

[Docket DARS-2019-0055]
RIN 0750-AK53


Defense Federal Acquisition Regulation Supplement: Modification 
of DFARS Clause ``Trade Agreements'' (DFARS Case 2019-D016)

AGENCY: Defense Acquisition Regulations System, Department of Defense 
(DoD).

ACTION: Final rule.

-----------------------------------------------------------------------

SUMMARY: DoD is issuing a final rule amending the Defense Federal 
Acquisition Regulation Supplement (DFARS) to update a paragraph 
citation in DFARS clause 252.225-7021, Trade Agreements.

DATES: Effective September 13, 2019.

FOR FURTHER INFORMATION CONTACT: Ms. Carrie Moore, telephone 571-372-
6093.

SUPPLEMENTARY INFORMATION:

I. Background

    This final rule amends DFARS clause 252.225-7021, Trade Agreements, 
to update an outdated citation in paragraph (e) of the basic clause and 
paragraph (f) of the alternate II clause. The DFARS clause is included 
in solicitations and contracts for the acquisition of supplies subject 
to the World Trade Organization Government Procurement Agreement. The 
clause: Provides pertinent definitions and country listings for 
designated and qualifying countries; requires contractors to deliver 
only U.S.-made, qualifying country, or designated country end items, 
unless otherwise stated in the contract; prohibits the contract price 
from including duty for products for which the contractor will claim 
duty-free entry; and provides information on applicable sections of the 
Harmonized Tariff Schedule of the United States (HTSUS).
    Paragraph (e) of the basic clause and paragraph (f) of the 
alternate II clause provide a link to the HTSUS and identify specific 
sections of the Schedule that provide more information

[[Page 48501]]

on the duty-free status of articles specified in paragraph 
(a)(2)(ii)(A) of the clause. Paragraph (a)(2)(ii)(A) used to be the 
location in the clause for the definition of ``Caribbean Basin country 
end product,'' but this paragraph number no longer exists. Instead, the 
clause has been renumbered and all of the definitions in the clause are 
include in alphabetical order under paragraph (a).
    This rule removes the reference to paragraph (a)(2)(ii)(A) in the 
clause and replaces it with a reference to the definition of 
``Caribbean Basin country end product'' in paragraph (a).

II. Discussion and Analysis

    The modification of this DFARS text implements a recommendation 
from the DoD Regulatory Reform Task Force. On February 24, 2017, the 
President signed Executive Order (E.O.) 13777, ``Enforcing the 
Regulatory Reform Agenda,'' which established a Federal policy ``to 
alleviate unnecessary regulatory burdens'' on the American people. In 
accordance with E.O. 13777, DoD established a Regulatory Reform Task 
Force to review and validate DoD regulations, including the DFARS. A 
public notice of the establishment of the DFARS Subgroup to the DoD 
Regulatory Reform Task Force, for the purpose of reviewing DFARS 
provisions and clauses, was published in the Federal Register at 82 FR 
35741 on August 1, 2017, and requested public input. No public comments 
were received on this clause. The DoD Regulatory Reform Task Force 
reviewed the requirements of DFARS clause 252.225-7021 and recommended 
its modification to correct the reference.

III. Applicability to Contracts at or Below the Simplified Acquisition 
Threshold and for Commercial Items, Including Commercially Available 
Off-the-Shelf Items

    This rule only updates a citation in an existing clause. The rule 
does not impose any new requirements on contracts at or below the 
simplified acquisition threshold or for commercial items, including 
commercially available off-the-shelf items.

IV. Publication of This Final Rule for Public Comment Is Not Required 
by Statute

    The statute that applies to the publication of the Federal 
Acquisition Regulation is Office of Federal Procurement Policy statute 
(codified at title 41 of the United States Code). Specifically, 41 
U.S.C. 1707(a)(1) requires that a procurement policy, regulation, 
procedure or form (including an amendment or modification thereof) must 
be published for public comment if it relates to the expenditure of 
appropriated funds, and has either a significant effect beyond the 
internal operating procedures of the agency issuing the policy, 
regulation, procedure, or form, or has a significant cost or 
administrative impact on contractors or offerors. This final rule is 
not required to be published for public comment, because DoD is not 
issuing a new regulation; rather, this rule is merely updating a 
reference in an existing clause.

V. Executive Orders 12866 and 13563

    E.O.s 12866 and E.O. 13563 direct agencies to assess all costs and 
benefits of available regulatory alternatives and, if regulation is 
necessary, to select regulatory approaches that maximize net benefits 
(including potential economic, environmental, public health and safety 
effects, distributive impacts, and equity). E.O. 13563 emphasizes the 
importance of quantifying both costs and benefits, of reducing costs, 
of harmonizing rules, and of promoting flexibility. This is not a 
significant regulatory action and, therefore, was not subject to review 
under section 6(b) of E.O. 12866, Regulatory Planning and Review, dated 
September 30, 1993. This rule is not a major rule under 5 U.S.C. 804.

VI. Executive Order 13771

    This rule is not subject to E.O. 13771, because this rule is not a 
significant regulatory action under E.O. 12866.

VII. Regulatory Flexibility Act

    Because a notice of proposed rulemaking and an opportunity for 
public comment are not required to be given for this rule under 41 
U.S.C. 1707(a)(1) (see section IV. of this preamble), the analytical 
requirements of the Regulatory Flexibility Act (5 U.S.C. 601 et seq.) 
are not applicable. Accordingly, no regulatory flexibility analysis is 
required, and none has been prepared.

VIII. Paperwork Reduction Act

    The rule does not contain any information collection requirements 
that require the approval of the Office of Management and Budget under 
the Paperwork Reduction Act (44 U.S.C. chapter 35).

List of Subjects in 48 CFR Part 252

    Government procurement.

Jennifer Lee Hawes,
Regulatory Control Officer, Defense Acquisition Regulations System.
    Therefore, 48 CFR part 252 is amended as follows:

PART 252--SOLICITATION PROVISIONS AND CONTRACT CLAUSES

0
1. The authority citation for 48 CFR part 252 continues to read as 
follows:

    Authority: 41 U.S.C. 1303 and 48 CFR chapter 1.


252.225-7021  [Amended]

0
2. Amend section 252.225-7021 by--
0
a. In the clause heading, removing the date ``(AUG 2019)'' and adding 
``(SEP 2019)'' in its place;
0
b. In paragraph (e) introductory text, removing ``paragraph 
(a)(2)(ii)(A)'' and adding ``the definition of ``Caribbean Basin 
country end product'' within paragraph (a)'' in its place.
0
c. In the Alternate II clause--
0
i. In the clause heading, removing the date ``(AUG 2019)'' and adding 
``(SEP 2019)'' in its place;
0
ii. In paragraph (f) introductory text, removing ``paragraph 
(a)(2)(ii)(A)'' and adding ``the definition of ``Caribbean Basin 
country end product'' within paragraph (a)'' in its place.

[FR Doc. 2019-19560 Filed 9-12-19; 8:45 am]
BILLING CODE 5001-06-P